|Analysis||Oil inclined today above $78 a barrel paring some last week's losses, as Hurricane Ida roared on Sunday in the oil-rich region of the Gulf of Mexico, which accounts for more than quarter of U.S. crude production. The Hurricane forced many oil companies to evacuate workers, which are threaten oil supplies.|
On the other hand, oil prices benefited from the dollar's slid on Monday which boosted dollar-denominated commodities. The dollar index, a gauge of the dollar's movements against a basket of major currencies slumped to 75.22, compared with Friday's closing at 75.77. The green currency slipped on optimism in markets, as the G20 agreed to continue with stimulus measures to support their economies; lifting Asian stocks and spurring demand for higher-yielding assets.
The MSCI Asia Pacific Index gained more than 0.6%, while Nikkei index eked out a 0.2% gain. Wall Street on Friday closed on a slight incline, despite the grim non-farm-payrolls report. Crude prices gained today but economic conditions still remain weak, seen by the U.S. labor's report that showed unemployment jumping to its highest in 26 years to 10.2%. Thus, we have to wait for data released this week, especially GDP fro the third quarter in the euro zone.
Meanwhile, oil is traded at $78.35 recording a high of $78.92 and a low of $77.77; whereas the contract a day ago edged down $2.19 closing at $77.43, while recording a high of $80.34 per barrel and a low of $76.71 per barrel.